Author (Person) | Arnberg, Soren, Barslund, Mikkel |
---|---|
Publisher | Centre for European Policy Studies [CEPS] |
Series Title | CEPS Working Document |
Series Details | No. 389, February 2014 |
Publication Date | February 2014 |
Content Type | Journal | Series | Blog |
From Source URL click on 'Download the document (PDF) for FREE'. Abstract: This paper aims to estimate the crowding-out effect of the Danish mandatory labour market pension reforms begun in 1993 on the level of total household savings for renters. The effect is identified via a large panel of individual administrative records utilising the differences in speed, timing and sectoral coverage of the implementation of the reform in the period 1997 to 2005. Little substitutability was found between current mandatory labour market pension savings and private voluntary savings. Each euro paid into mandatory labour market pension accounts results in a reduction in private savings of approximately 0 to 30 cents, depending on age. This low rate of substitution is only, to a minor extent, explained by liquidity constraints. The results point to mandatory pension savings having a large effect on total household savings. Thus, pension reforms that introduce mandatory savings have macroeconomic implications. |
|
Source Link | Link to Main Source http://aei.pitt.edu/50139/ |
Subject Categories | Employment and Social Affairs |
Countries / Regions | Denmark, Europe |